Title Insurance Claim Questions

[Courtney Debetaz]

Hello, 

Has anyone had to make a title insurance claim for an "Incomplete Title"? I recently went to sell my townhouse and a couple days before closing I was informed that I had an incomplete title. I bought a townhouse, that was once a condominum, many years ago and during the closing they are telling me it isn't either a townhouse or a condo. It was marketed to me as a townhouse and sold to me as one. There has never been an HOA or COA and all other owners agree. The title company stating this is say the dissolution was incomplete and the lots under the units must be subdivided and approved by the local gov't. Do I have a valid title claim here? I have filed one, but I do not know what to expect and the communication is lacking, to say the least. The sale fell through. I am hoping to be made whole because it seems that my only recourse is to sell to a cash buyer at a big discount.

Any advice on the claim process is greatly appreciated.